JetBlue Airways Corp. won approval from the US Federal Aviation Administration to take over Spirit Airlines' takeoff and landing slots at New York's La Guardia Airport. The regulator granted the transfer on the condition that JetBlue cannot lease or trade any of the 22 slots to another carrier until after April 2028, according to a notice released Tuesday.
With the new slots, JetBlue will be able to add more flights from an airport close to Manhattan at a time when the carrier is struggling to return to profitability. The US Bankruptcy Court for the Southern District of New York in July authorized JetBlue to buy Spirit's La Guardia slots for $58.5 million, subject to FAA approval. The FAA tentatively greenlit the transfer in August.
Spirit ceased operations on May 2 after failing to secure emergency funding. Its collapse followed a rocky few years marked by higher jet fuel prices from the US war with Iran, an unsuccessful government bailout, two bankruptcy filings and a blocked merger with JetBlue.
The FAA in Tuesday's notice said it determined allowing JetBlue to take over Spirit's La Guardia slots would be in the public interest by encouraging competition and increasing availability of low-priced services.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing